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Co-op pulls cheapest energy deal

Following the Co-op’s retreat, First Utility is now the cheapest for dual-fuel, with an annual average of £992 (Getty)

CONSUMERS suffered a blow last week as the cheapest energy package on the market disappeared, removing much-needed competition.

Fair and Square from Co-operative Energy had topped the league of “best buys” since it was launched on July 17, as a low-charge, self-manage service. Customers had to agree to read their own meters, manage their accounts online and pay by direct debit. In return, the dual-fuel bill was pegged until September 2015 at an annual average of £989, compared with the market average of £1,265.

The Co-op acknowledges it under-estimated demand after being besieged with customers. The deal has been replaced with a slightly more expensive version of Fair and Square. This will cost £37.40 more, at £1,026.40.

The Co-op said: “We do want to continue offering what is clearly a product customers are eager to have, but wholesale prices have edged up slightly, so we have had to lift the